what does it mean if something is "pre-foreclosure" lis pendens and the price of the house is $5000?

Asked by Lolasher, 11024 Tue Jun 15, 2010

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Doc & Ellen…, Agent, San Antonio, TX
Tue Jun 15, 2010
BEST ANSWER
Hi, Lola,

It usually means that you are looking at a web site with incomplete information. The "price" they show is sometimes the amount owed, to a Home Owner Association, for example. The HOA has filed to foreclose due to unpaid fees. If you "buy" the home at foreclosure auction for that amount, you buy it "subject to" senior liens. Often they are higher than the home is worth. Surprise! If it has existing tax liens, they might become yours.

I get asked every day about deep discount homes, nice looking homes priced @ 10% of apparent market value, or so. In each market, there are dozens of folks who have the latest tools to spot real bargains before they ever get published. They get up early and scour the market each day for such bargains. When they find one, they verify the information from multiple sources, and do a drive by on the ones with potential. They snap them up before you and I ever even hear of them.

So, ask yourself, am I equipped to compete with those folks, by equipment and tools, education and temperament? If there were such a bargain publicly advertised, wouldn't someone have already bought it? If you really want to play in that arena, find yourself a mentor, someone who knows the pitfalls, understands the questions to ask, and is willing to teach you the game. Learn carefully and slowly. Then go get 'em.

Good luck.

Doc
Web Reference:  http://TellEllen.com
0 votes
Stacey Roths…, Agent, Great Neck, NY
Wed Jun 16, 2010
Pre-foreclosure or lis pendens means the homeowner is late with mortgage payments and about to be in foreclosure. Bad for the seller, possibly good for the buyer. The seller may be motivated to sell or rent to help pay the mortgage. I think $5000 could be a misprint for a house asking $500,000 or $5000/month rent. Give me a call if I can help you find a home in Great Neck, my area of expertise.
0 votes
Arlynn B. Pa…, , Roslyn Heights, NY
Wed Jun 16, 2010
Hi Lolasher,

"Pre-Foreclosure" means that the lending institution (bank who issued the mortgage on the home) has given the homeowner a "notice to foreclose". This is the first step in any foreclosure process in New York and it is usually as a result of the homeowner failing to pay his/her mortgage payments for a period of 3 months or more. In this current economic climate it could indicate that the homeowner owes more on the mortgage than the home is currently worth, but this is not necessisarily so and a market evaluation of the home in comparison with the mortgage amount currently owed would indicate whether this is true.

As for the price of the home being $5000? Probably a misprint if the home is in Great Neck or Kings Point. Perhaps the homeowner is attempting to rent it for $5000/month to hopefully be in a position to pay his/her mortgage and be able to keep the home?

If you have any further questions regarding the foreclosure or short sale process and/or purchasing a home, please contact me.

Please visit http://www.ArlynnPalmer.com for FREE Buyer and Seller Reports, FREE School and Neighborhood Reports, a Monthly Newsletter and other valuable real estate information.

Regard,
Arlynn

Arlynn B. Palmer, ESQ, SRES, CBR, CMS, CNS
Associate Broker
Coldwell Banker Claire Sobel
(516)410-3594
Arlynn@ArlynnPalmer.com
Web Reference:  http://www.ArlynnPalmer.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Wed Jun 16, 2010
If you are looking at a RealtyTrac ad--Keep in mind that RealtyTrac's information is not always accurate and oftentimes misleading--you could be looking at a lis pendens property--notice of default--some of those properties may not be for sale yet, and some may never be, if the default is satisfied by the owner, or you could be seeing some kind of filing fee. If you are interested in foreclosures, work with an agent--he/she will have access to reliable information--also don't overlook traditional sales as some may turn out to be a much better bargain than some of the foreclosure properties.
0 votes
Juliet Const…, , Sierra Madre, CA
Tue Jun 15, 2010
Lis pendens is law sue depending. There are certain steps that have to be followed before a property can be sold by the bank. It usually takes about 90 days before the bank issue a sale date, this is the preforeclosure period. They have to advertise the property in the paper and send out notices before the sell.
0 votes
Allen Bauman, Agent, New York, NY
Tue Jun 15, 2010
Hi Lola,

The answers below are correct.
It appears that you are looking for a home in Kings Point. I don't think you will find one for $5,000 there!!!
Are you looking to purchase a home to live in or an investment property? Either way I will be able to help you find a property and answer any questions you have during this process. Call me for a no obligation consultation.

Allen Bauman
Century21 Yve R. E.
Licensed R. E. Agent
NYS Certified Residential Appraiser.
516-791-3846
allen.bauman@gmail.com
0 votes
Mike Linkena…, Agent, Jacksonville, FL
Tue Jun 15, 2010
Pre foreclosure means they have been served a "lis pendens" (notice of intent to foreclose), and the property is currently in foreclosure proceedings. It is also likely the person owes more than the current market value and their lender must agree to the terms of the sale.
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